Michael Burry Says He's Still Betting Against Palantir After Trump Post Boosts Stock

Why It Matters

Burry’s steadfast bet highlights lingering valuation concerns for high‑profile AI and defense software firms, suggesting that market hype may be outpacing fundamentals. The stance could influence other investors weighing exposure to politically sensitive, government‑linked tech stocks.

Key Takeaways

• Burry holds June 2027 $50 puts and Dec 2026 $100 puts.
• Trump’s Truth Social post lifted Palantir ~13% weekly despite bearish sentiment.
• Burry values Palantir under $50, far below current $127 price.
• Burry added Nvidia Jan 2027 $115 puts, signaling broader AI bearishness.
• Palantir’s defense contracts stay strong, yet valuation remains contested.

Pulse Analysis

Michael Burry’s reputation as the “Big Short” investor lends weight to his ongoing bearish outlook on Palantir Technologies. By maintaining June 2027 $50 strike puts and December 2026 $100 strike puts, Burry signals confidence that the company’s market price will fall well below its current $127 level. His position, first taken in late 2025, reflects a deep‑seated belief that Palantir’s growth prospects are overstated, especially given its reliance on government contracts that can be subject to political and budgetary shifts.

The recent Trump endorsement on Truth Social created a brief rally, nudging the stock upward after an 18% three‑day decline. However, the broader market trend remains negative, with a projected 13% weekly drop and a 28% year‑to‑date loss. Analysts note that while Palantir’s defense and intelligence software remains in demand—particularly amid heightened geopolitical tensions—its valuation appears disconnected from underlying fundamentals. The company’s share price, near $127, is more than double Burry’s estimated intrinsic value of under $50, raising questions about speculative pricing driven by AI hype.

Burry’s simultaneous increase in Nvidia put exposure underscores a wider skepticism toward AI‑centric equities. By limiting downside risk through options, he illustrates a disciplined approach to navigating volatile tech markets. For investors, his moves serve as a cautionary signal: political endorsements and short‑term price spikes may not translate into sustainable upside, especially for firms heavily tied to government spending. Monitoring valuation metrics and macro‑policy developments will be crucial for anyone weighing exposure to the intersecting worlds of AI, defense, and political influence.